Google CEO voices his concerns regarding AI and its potential harmful damages in the future

Google CEO voices his concerns regarding AI and its potential harmful damages in the future

Sundar Pichai, Google CEO gave a statement on Monday regarding Artificial Intelligence and its increasingly widespread applications in our daily lives. He stated that Artificial Intelligence technology needs to be regulated in order to save mankind from its potential damages in the future. He further emphasized that although artificial intelligence has changed our lives in numerous ways, one cannot overshadow the risks it possesses in the future. 

Google is one of the most prominent AI developers in the world and it’s product Google Assistant, is all about innovative technology. It is also working on a number of other AI products, such as driverless cars and Google Cloud.

Many technological innovations have eased human lives and efforts over time but have ultimately caused harm as well. Common examples include the internal combustion engines that revolutionized the concept of traveling but ultimately caused more accidents as well. Mr Pichai stated that companies shouldn’t be able to 

“just build promising new technology and let market forces decide how it will be used, It is equally incumbent on us to make sure that technology is harnessed for good and available to everyone.” 

Pichai further added that wicked uses of facial recognition and falsity on the internet, such as deepfakes, are examples of the negative consequences of AI.

Companies that are working on Artificial Intelligence technologies need to be legitimately held accountable for their actions and face severe penalties if they don’t follow international rules and regulations.

failure to join

Failure to Join FATF Will Increase Economic Pressure

According to a top diplomat, Iran’s refusal to comply with the requirements of the Financial Action Task Force will result in more economic pressure on the country which is already suffering from a number of American sanctions. 

The Foreign Ministry Spokesman Abbas Mousavi said on Monday in a regular press briefing in Tehran, 

“We see the adoption of conventions that FATF has urged all countries and banks of the world [to ratify] as beneficial, not harmful.” 

FATF has urged Iran to implement legal reforms to meet its global standards and has extended its deadline numerous times. In mid-October, FATF gave Iran a final deadline to implement international reforms by February 2020 otherwise FATF would advise all its members to apply countermeasures. 

Iran has already made amendments to its counter-terrorist financing (CFT) and anti-money laundering (AML) acts. But the bills to ratify the Convention Against Transnational Organized Crime (aka Palermo) and Terrorist Financing Convention have been passed by the parliament but not yet endorsed by higher legislative authorities. 

It is crucial for Iran to maintain ties with other countries at present because its economic relations have been restricted by the sanctions imposed by the US. The sanctions were placed after the US withdrew from the 2015 nuclear agreement last year. 

The US has threatened to impose penalties on countries that conduct business with Iran. 

Under these circumstances, non-compliance with international norms will further hinder the countries’ trade with the world. 

According to Mehdi Mohtarnia, a political analyst, it is imperative for Iran to comply with FATF guidelines. 

‘Currently, North Korea has been blacklisted and Iran will be the second country if it is also blacklisted. If so, the first consequence will be an international consensus against Iran in the area of economic activities.’ 

Back in October, President Hassan Rouhani called on the Expediency Council to approve the FATF related bills. 

‘It is our pride that we fight terrorists and counter corruption, therefore we should not allow allegations of money laundering against our banking system. This hurts our country,’ the President stated. 

Ukraine Issues 14 Million Biometric Passports

Ukraine Issues 14 Million Biometric Passports

According to Ukrinform, more than 14 million biometric passports have been issued in Ukraine so far. The Head of the State Migration Service of Ukraine, Maksym Sokoliuk, told in an interview that 14 million 200 thousand biometric passports have been issued up to date. 

According to Sokoliuk, 

‘However, one person has the right to hold two passports; pages in passports of some people also end too fast; and the children, who were issued passports in 2015, already have their passports expired. Therefore, we approximately use the coefficient that the number of holders is 25% lower than the number of issued documents.’ 

Till June, 42.6 million trips had been made to the EU countries as a result of the liberalized regime between Ukraine and the EU from 2017 as reported by Ukraine’s State Border Guard Service. Due to this regime, Ukrainians are allowed to travel to EU member states other than Ireland and the UK (for now) without a visa for up to 90 days during any 180-day period. 

In 2018, Ukraine issued more than three million biometric passports and about 75000 ID cards during the year. Earlier this month, the Cabinet of Ukraine launched a pilot project which aimed to introduce a national digital ID system for online identity verification. 

5 Technology Trends To Disrupt Banking in 2020

5 Technology Trends To Disrupt Banking in 2020

Living in the digital era, technology is driving major changes in almost every industry. Whether it’s about introducing automation for improved business operations, enhanced cybersecurity for data protection, cloud computing for instant collaboration, data analysis for insights extraction, or personalized customer experience, technology is becoming an integral part of businesses.

The banking industry is no more of an exception. In fact, it is the most technology-driven industry in the world. Considering the rising trend of technology, more than 81% of banking CEOs are already in favor of the digitization in financial institutes – as reported by PwC study. To strive for the world of immense competition, financial institutions are proactively adopting the latest technology trends which include, but not limited to, artificial intelligence (AI), chatbots, blockchain, big data, etc.

While the businesses are competing to attract maximum customers, the only competitive edge is to keep track of the latest trends in the market and implementing them in your business in the most effective and useful way. 

Here are some of the latest technology trends all set to disrupt the banking sector in upcoming years.

Artificial Intelligence

Artificial intelligence has been there for a few years now and is gradually taking over the industries. The majority of the professionals and decision-makers in financial institutes are investing in artificial intelligence as reported by PricewaterhouseCooper study. Executives and business professionals are well aware of the business advantages that AI is bringing.

The significant potential of artificial intelligence for the industry is the cost savings in business operations. As per the Business Insider Report, the cost savings in the banking sector due to the smart use of AI are expected to be $447 billion by 2023.

The financial institutes are introducing artificial intelligence technology to save costs in their three-tiered business structure, i.e. front office, middle office, and back office. The fruitful applications of AI across these bank’s offices are offering extensive cost-saving opportunities for the institutions.

The following AI use cases across the main channels of banks are enhancing the operations and providing recommendations for the financial institutes that how they can implement AI-enabled digital transformations in their organization.

Front Office (Conversational Banking)

By leveraging AI technology on the frontend, banks will continue to enhance customer identification and authentication processes seamlessly, build strong relationships with customers by providing personalized insights and recommendations. Moreover, by introducing voice assistants and chatbots, the financial institutes are able to mimic live employees, handling customer queries 24/7.

Middle Office (Anti-fraud)

With the increasing trend of the digital frauds and stringent compliance requirements by the regulatory authorities, banks are being forced to incorporate the most advanced AI technology to meet the KYC/KYB and AML compliance. In middle-office functions, AI is facilitating banks to improve their anti-money laundering (AML) and know your customer (KYC) checks to prevent payment frauds and financial crimes.

Back Office (Underwriting)

Banks have started incorporating AI solutions to improve their underwriting decisions by utilizing multiple factors that provide better transparency about the borrowers than traditional underwriting systems. It helps the institutes to assess the consumers that are considered “at-risk”.

These AI-enabled transformations exercised by banks may seem much advanced but they are revealing how to capture the opportunity efficiently. Understanding the need for a holistic AI strategy, some organizations – including Citi, JPMorgan Chase, HSBC, and U.S. Bank – are already employing AI.

Chatbots

The explosion of the internet is making processes quick and reliable by providing customers opportunities to get their work done remotely. Henceforth, in the customer-driven market, they don’t wait long to get their queries resolved and demand fast and adequate services to resolve their issues.

The invention of AI-based Chatbots has paved new roads for banks by making conversational banking more convenient and automated. Many financial institutions are using chatbots to meet dynamic user expectations while reducing costs. They are eliminating the use of traditional methods of two-way communication, i.e phone calls, emails, and physical visits. 

The banks, for instance, Capital One and Bank of America, are using chatbots to resolve simple customer queries. However, with the advancement in technology, bots will not only be able to answer queries but also detect fraudulent activities, offer a financial trip and assist the customers in registration processes.

Chatbots are able to provide personalized customer experience to meet their ever-changing expectations. It facilitates banks in making smart conversations with customers eradicating the need for human customer agents, saving the cost. With the right chatbot development company, banks can provide centralized financial management and improve customer service by replacing human agents. 85% of the customer service interaction is expected to be handled by Chatbots in 2020, states Gartner.

Big Data

Moving into the fourth industrial revolution, the data-driven market is overtaking the businesses. To survive the competitive market, data analysis is the key. But with a large amount of data generated every day, it is becoming nearly impossible to extract useful information and insights. To deal with it, big data is the answer.

This technology is causing significant disruption in the banking industry by collecting and putting all the banking data in one place and processing it to get valuable information to stay ahead of competitors. The collected information includes ATM withdrawals, money transfers, debit/credit card transactions, customer data, etc. 

Due to big data analytics, the banking industry is going through a major transformation. It is helping financial institutes to perform their operations in a better way. According to IDC Semiannual Big Data and Analytics Spending Guide of 2016, the investments in big data analytics totaled $20.8 billion, alone in the banking sector. It will grow in the upcoming years. Undoubtedly, big data will become a bespoke tool for banks in 2020 and beyond.

Blockchain

Blockchain technology is commonly known for cryptocurrency like Bitcoin. It efficiently keeps track of transactions in a verifiable way. The blockchain market is rapidly growing and is expected to reach an annual revenue of $20 billion by 2024. It explains the increasing demand for block technology across multiple industries and financial institutions is no different.

Blockchain will disrupt the banking sector because they are highly secure, economical and easy to operate. The adoption of this technology will rise as more financial institutions will realize how blockchain can improve the customer experience while enhancing security and reducing the cost. Due to its ease of use and transparency, blockchain will be used in banks for digital payment and currency exchange.

Blockchain technology protects the customer’s data (both personal and financial) as it acts as a decentralized database by storing all the data on multiple blockchain servers. Through blockchain, banks can eliminate the need for third parties in loan and credit processing. Moreover, blockchain makes payments more secure while reducing interest rates.

Robotic Process Automation

Businesses are dealing with voluminous data every day, which means there are high chances of human errors. Several banks, including Axis Bank and Deutsche Bank, are incorporating RPA to effectively manage business operations while reducing human errors and efforts. With the advancement in the digital world, the process turnout time is reduced from weeks to minutes and seconds, all thanks to robotic process automation.

Banks are benefitting from RPA technology, by automating their several processes. It does not only help them in minimizing errors and saving cost and human resources but also enables them to focus on customer engagement and business growth. Some of the processes include:

Know Your Customer (KYC)

Know your customer is a customer identification and verification process imposed by regulatory authorities on every financial institute. This process involves in-depth customer verification and due diligence that may require up to 1,000 Full-time equivalents (FTEs) to successfully carry out the process. Moreover, the banks spend around $384 million per year on KYC compliance.

Taking into account the resources, time and cost involved in the KYC process, banks have started incorporating digital KYC solutions – a domain of RPA. Through eKYC, financial institutes can fulfill the KYC checks in real-time, hence, improving customer experience. 

Meeting Compliance

The rise in digital frauds, money laundering, and terrorist funding incidents, the compliance rules are becoming more stringent and banks are sternly obliged to comply with each of them. The applications of RPA are making it convenient for banks to comply with rules in an efficient manner.

According to Accenture’s 2016 survey, 73% of the surveyed compliance officers find RPA a key enable in compliance, in the next three years. Through RPA, productivity can be increased, henceforth improving KYC/KYB, AML, CFT compliance processes.

Cryptocurrency Security

Blockchain and cryptocurrency security Guide

Online bitcoin business might have experienced a slump in recent months but still, it remains to be preferred mode of transactions across blockchain landscape. Concerns for cryptocurrency security are moderate but it is still highly advisable to ensure bitcoin security through reliable means. Most of the times, platforms and crypto exchanges used for trading of bitcoin play a pivotal role in cryptocurrency security. We have compiled a comprehensive cryptocurrency security guide for you containing vital cryptocurrency security tips, especially you are using bitcoin for business or investment purposes.

Bitcoin Security Guide

As discussed earlier, cryptocurrency security is largely dependent on the platform and protocol being used by the cryptocurrency. Any chink in the armor suit of cryptocurrency security can prove to be fatal for the entire network including yourself. So it is highly advised to use a reliable and hard to breach platform for bitcoin transactions. In order to avoid financialy devastating cryptocurrency security issues, always relay on cryptoexcahnges that understand the value of bitcoin for business. The relative anonymity of online bitcoin business can easily be turned against you if you are not careful about cryptocurrency security.

Centralized and independent Cryptocurrency Security

Centralized cryptocurrency protocols are relatively secure for business and investment as they are under the supervision of peers of cryptocurrency and the collective interest of cryptocurrency network is ensured by these peers. Bitcoin security is ensured by centralizing the major asset share of bitcoin around 4 major mining pools. With cryptocurrency exchanges, vulnerabilities of the system become more clear as they are developed using the independent code with much more risks attached related to cryptocurrency security. Unlike a blockchain based cryptocurrency that provides relative anonymity and de-centralized access to digital resources, a crypto exchange basically is just like any other website that uses a physical data center or cloud service to offer services to its customers. It means that cryptocurrency security issues are aggravated by easier access of hackers and crypto bandits to these crypto exchanges, even if they cannot steal cryptocurrency like Bitcoin directly from the blockchain based mining pools.

So it is important that you use a popular yet secure crypto exchange for trading of your bitcoins or any other cryptocurrency.  Check for the security protocols that are put in place by the crypto exchange management to secure their assets and even of those who sign up for the trading of cryptocurrency.

Crypto Wallets for Cryptocurrency Security

Crypto wallets form the 3rd layer of protection in our cryptocurrency security guide. Your choice of crypto wallets decides the nature of bitcoin security that will be provided. As like crypto exchanges, crypto wallets are also just an online portal – many times based on blockchain as well – where the security of the platform should be critical. Most online bitcoin business is conducted using crypto wallets that actually hold the cryptocurrency on behalf of their customers, making them virtual in charge of the currency and making it easier for hackers to steal the cryptocurrency by compromising the technical glitches that might be available for exploitation on these crypto wallets.

Core Aspect of Cryptocurrency Security

The most critical aspect of cryptocurrency security lies in all the avenues in which bitcoin or any other cryptocurrency is exposed to a non-blockchain environment. Whenever a cryptocurrency appears on a non-blockchain platform, there is a substantial risk to cryptocurrency security. Additionally, whenever bitcoin or any other cryptocurrency is distributed without regard of its sharing principles, cryptocurrency security issues start getting serious.

Crytoexchanges and crypto wallets that are operating on the shaky ground and want to resolve bitcoin security issues and threats to any other cryptocurrency’s security can take help from Shufti Pro. It is a perfect solution to resolve cryptocurrency security issues with identity verification services such as facial verification, document verification, address verification, 2 factor authentication, and biometric consent verification. Shufti Pro works perfectly fine with both blockchain based and non-blockchain wallets and exchanges. Its restful API and mobile SDKs make it an ideal choice for businesses, especially those that want a KYC provider with omnichannel support.

Shufti Pro covers 190+ countries and supports more than 150 languages offering a competitive edge through its AI backed verification services for cryptocurrency security. Facial verification is performed through liveness detection and document verification is made full proof through machine learning algorithms and pattern recognition. Biometric consent verification is supported by Handwritten note verification using OCR based data extractions. Real-time verification results from Shufti Pro ensure that there is no bottleneck in the registration process and the entire process is completed smoothly.

AML compliance solutions are also offered by Shufti Pro, using background checks that are performed using a large databank. This large databank contains data from 3000 databases and 1000 sanction lists published by global and regional watchdogs. Rigorous regulatory oversight can be clearly avoided by crypto wallets and crypto exchanges using identity verification services from Shufti Pro that can easily take care of cryptocurrency security at a reasonable price.

Recommended For You: